JP Morgan's Tom Lee Explains Why Stocks Rally After Hurricaneshttp://www.businessinsider.com/jpms-tom-lee-on-stocks-and-hurricanes-2012-10/comments
en-usWed, 31 Dec 1969 19:00:00 -0500Sun, 18 Feb 2018 00:54:57 -0500Sam Rohttp://www.businessinsider.com/c/50903f4a69beddaa7e00000bWaltTue, 30 Oct 2012 16:57:46 -0400http://www.businessinsider.com/c/50903f4a69beddaa7e00000b
He hopes?http://www.businessinsider.com/c/508ff9faecad04ec7500000eMGKTue, 30 Oct 2012 12:02:02 -0400http://www.businessinsider.com/c/508ff9faecad04ec7500000e
Natural disasters appear to be good for the economy (in terms of numbers) because it causes an injection of insurance money that would otherwise just sit on the sidelines invested in low yield financial products. It's like stimulus. Think of the auto industry selling lots of replacement cars. Rebuilding can also be good if older infrastructure can be upgraded and rebuilt to function more efficiently.
And no we can't blow up the entire country because there isn't enough insurance dollars to go around. At the same time. the money deployed will slowly get paid back through higher future premiums. What's really different betweena natural disaster and government stimulus is that nature can be very targeted in terms of geography, while Congress needs to be equitable enough across the whoel country or there won't be enough buy-in.http://www.businessinsider.com/c/508ff10decad045166000020PON ZEETue, 30 Oct 2012 11:23:57 -0400http://www.businessinsider.com/c/508ff10decad045166000020
Don't try to confuse Pon Zee with logic - Pon Zee never work that way to begin with. Pon Zee do everything according to 4 year plan. Tom Ree and O'Neil over at Sacks of Goldman our boys now - they work for us, not you. They do what we say, we pay them big time. If we say want US equities go up, they make happen. If we say we want reputation of China go up as good place to make money and be next powerhouse, they make happen. It in their retainer. We not scared of Romney - he in our pocket long time ago. We scared of Obama though - he not following our plan.http://www.businessinsider.com/c/508fe837eab8ea2219000009WindowTue, 30 Oct 2012 10:46:15 -0400http://www.businessinsider.com/c/508fe837eab8ea2219000009
It's not unpalatable, it's a fallacy.
Simple logic would tell you that money spent on fixing broken things can't be spent on other goods/investments that you would have otherwise consumed - diverting money away from other sectors of the economy.
The same amount of money will be spent, but the consumer will derive less 'utility', as he is simply paying for the same thing twice.http://www.businessinsider.com/c/508fe65369bedd8a14000003StimulusTue, 30 Oct 2012 10:38:11 -0400http://www.businessinsider.com/c/508fe65369bedd8a14000003
If Hurricanes are so good for the market, why not bomb whole cities every few months and then rebuild them? Think of all the jobs that would create!...
It's ridiculous that such devastation is seen as a blessing for equities. Rebuilding requires capital, and it's not created out of thin air, it's created by putting more debt on these communities and the federal government. Maybe it's a shot of adrenaline, but in the long run, this devastation is not a good thing. My heart goes out to everyone affected.http://www.businessinsider.com/c/508fe4c2ecad04c44d00000etaranisTue, 30 Oct 2012 10:31:30 -0400http://www.businessinsider.com/c/508fe4c2ecad04c44d00000e
Bastiat called and wants a word with Mr. Lee about a broken window.http://www.businessinsider.com/c/508fe4a6ecad04f94d000011PON ZEETue, 30 Oct 2012 10:31:02 -0400http://www.businessinsider.com/c/508fe4a6ecad04f94d000011
Stocks rally when we say so. China control you now. Tom Lee our boy now.